Markets slide for 7th day, RBI policy in focus

Mumbai: Benchmark indices failed to hold on to early gains and closed in the red for the seventh straight session on Thursday, with participants remaining in wait-and-watch mode ahead of the RBI's interest rate decision. Unabated selling by foreign funds added to the pressure, though a modest recovery in the rupee cushioned the fall, traders said.

After rallying in early trade, the 30-share BSE Sensex came under selling pressure in the afternoon session and closed 188.32 points or 0.33 per cent lower at 56,409.96. Similarly, the broader NSE Nifty dipped 40.50 points or 0.24 per cent to end at 16,818.10.

Asian Paints was the biggest laggard in the Sensex pack, tumbling 5.22 per cent, followed by Tech Mahindra, Titan, Kotak Mahindra Bank, Bajaj Finance, TCS, Wipro and Bajaj Finserv.

In contrast, ITC, Dr Reddy's, Tata Steel, Sun Pharma, Nestle India, M&M and NTPC were among the major winners, climbing as much as 2.51 per cent. The Reserve Bank of India (RBI) may take cues from its global counterparts, including the US Federal Reserve, to raise interest rate for the fourth time in a row on Friday to tame stubborn inflation.

In the broader market, the BSE smallcap gauge climbed 0.63 per cent and the midcap index rose 0.31 per cent.

Among the BSE sectoral indices, utilities fell by 1.38 per cent, followed by power (1.30 per cent), IT (0.60 per cent), consumer discretionary (0.47 per cent), teck (0.34 per cent) and financial services (0.33 per cent). Healthcare, FMCG, realty, commodities and industrials ended higher.

Meanwhile, the international oil benchmark Brent crude dipped 0.45 per cent to $88.92 per barrel.

The rupee consolidated in a narrow range and settled 20 paise higher at 81.73 against US dollar on Thursday.

Foreign institutional investors offloaded shares worth Rs 2,772.49 crore on Wednesday, according to data available with BSE.